Home Latest House Of Reps Backs states to collect VAT: Passes Bill 

House Of Reps Backs states to collect VAT: Passes Bill 


The house of representatives have passed a bill giving states the power to collect value added taxes and mine resources.

It would be recalled that Several states of the federation, are currently in a legal battle with the Federal Government on who collects VAT on goods and services sold in the states.

A bill to this effect, entitled “An Act to Alter 39, Part 1 of the Second Schedule of the 1999 Constitution as Amended to Substitute and Move the Item from the Exclusive Legislative List to the Concurrent Legislative List”, sponsored by Reps Hassan Usman Sokodabo and John Dyegh.

The bill proposes in part, that “The Constitution of the Federal Republic of Nigeria, 1999, is hereby altered as set out. Item 39, part 1 of the Second Schedule of the Principal Act, Altered by substituting the item and moving it from the Exclusive Legislative List, to the Concurrent List.

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“Thus, item 39, Part 1 of the Second Schedule of the Constitution to be moved to the Concurrent Legislative List now read: States Government shall manage their resources, mines and minerals, including oil fields, oil mining, Values Added Tax(VAT), geological surveys as well as natural gas. 50% of the total revenue accruable from the minerals shall be retained by the state where the minerals are derived.

“30% shall be credited to the Distributable Pool Account, while the remaining 20%, shall be credited to the Federation Account”.

According  to VANGUARD,  the piece of legislation listed for consideration in this legislative quarter, is expected to generate a considerable controversy.


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